PageGroup PLC · LSE:PAGE
PageGroup — H1 2021 Earnings Presentation
25 slides from PageGroup's earnings presentation, Aug 9, 2021
Slide 1: Half Year Results 2021
Steve Ingham Chief Executive Officer 9 August 2021 Kelvin Stagg Chief Financial Officer Half Year Results 2021 LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: Group operating profit of £64.3m
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Group operating profit of £64.3m Key financial highlights Gross Profit £404.2m Operating £64.3m Profit £75.6m H1 2019 Constant Currency Conversion 15.9% Growth Vs -3.7% H1 2019 Rate 17.4% H1 2019 Basic EPS 12.2p In
Slide 4: Financial Review
Financial Review
Slide 5: Protecting and investing in our platform
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Protecting and investing in our platform A further c. 400 experienced hires added in 2021, c. 800 in last 12 months 6000 250 200 4500 Gross Profit (£m) as reported 150 Fee Earners 3000 100 1500 50 0 0 Q1 Q4 Q3 Q2 Q
Slide 6: Improvement in productivity in all regions
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Improvement in productivity in all regions Gross profit per fee earner up 10.7% on H1 2019 H1 2021 H1 2019 GP Growth Operating Conversion Operating Conversion £m Gross Profit Rate (CC %) Gross Profit Profit Rate Pr
Slide 7: Costs down due to reduction in headcount
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Costs down due to reduction in headcount Headcount down c. 8% on pre-pandemic levels • Employee headcount reduction of c. 8% compared to pre- 30 pandemic levels Support staff as % of Group headcount • Repayment of
Slide 8: Effective Tax Rate (ETR)
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Effective Tax Rate (ETR) £m HY 2021 HY 2020 HY 2019 Profit Before Tax 63.7 (0.8) 74.6 Tax Charge 25.1 0.8 20.5 Effective Tax Rate 39.4% (107.6)% 27.5% • Rate in 2020 impacted by trading conditions • Expect tax rate
Slide 9: Strong and robust Balance Sheet
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Strong and robust Balance Sheet Net cash of £163.8m £m H1 2021 H1 2020 H1 2019 Intangible assets 45.6 41.4 36.5 Tangible assets 23.3 30.0 35.5 Right-of-use assets 83.8 110.8 129.5 Trade and other receivables 317.1
Slide 10: Strong cash flow generation
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Strong cash flow generation EBITDA of £93.0m due to improved trading conditions 280 240 36.3 93.0 21.8 200 10.7 6.9 18.7 £m 10.4 4.2 160 223.3 201.4 190.7 (29.0) 166.0 166.0 171.9 171.9 168.0 163.8 163.8 120 80 Dec
Slide 11: Capital Allocation and Sustainability
Capital Allocation and Sustainability Steve Ingham, Chief Executive Officer
Slide 12: Returning to dividend policy
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Returning to dividend policy 1st use of cash 2nd use of cash 3rd use of cash To satisfy To maintain the To make operational and ordinary dividend supplementary investment through downturns returns to requirements,
Slide 13: £100m total dividend to be paid in October
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 £100m total dividend to be paid in October Special dividend of 26.71 pence per share or £85m • 2021 interim dividend proposed of 4.70 pence per share or £15m, increase of 9.3% on 2019 • 2021 special dividend propos
Slide 14: Sustainability
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Sustainability Reporting & Targets • Debt financing with BBVA renegotiated to include environmental and social sustainability KPI’s • Carbon emissions offset in 2020 • Target of carbon net-zero within 5 years Downl
Slide 15: Summary
Summary
Slide 16: Summary
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Summary Strong financial and operational performance Gross Profit -3.7% in constant currencies vs 2019, +38.3% vs. 2020 Each quarter improving since Q2 2020 Conversion rate increased to 15.9% Strong balance sheet w
Slide 17: Appendix
Appendix
Slide 18: Our business model
Headline Numbers Financial Review Capital Allocation and Sustainability Summary Our business model H1 21 18
Slide 19: A growing international business
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 A growing international business Delivering on our global diversification strategy Gross Profit 39% 24% 14% UK International 61% 76% 86% FY 2007 FY 2013 H1 2021 Large, High 10% 17% 15% 30% 16% 37% Potential Markets
Slide 20: Significant variations in recruitment mix
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Significant variations in recruitment mix Geography Brands 13% 12% 15% 29% 26% 43% 87% 88% 85% 71% 74% 57% EMEA Asia Pacific Americas UK Michael Page Page Personnel Temp Perm 20
Slide 21: Long term fee earner and international growth
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Long term fee earner and international growth 7,000 ASIA EMEA AMERICAS UK PACIFIC Fee Earner Headcount 6,000 5,000 4,000 3,000 2,475 2,000 1,227 1,000 931 810 - 1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 200
Slide 22: Fee earner investment and support staff
Headline Numbers Financial Review Capital Allocation and Sustainability Summary Fee earner investment and support staff H1 21 7000 6000 5000 Headcount 4000 3000 2000 1000 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2003 2004 2005 2
Slide 23: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Capital Allocation and Sustainability Summary Year-on-Year Gross Profit Rates H1 21 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% -18.6% +3.6% +75.8% Asia Pacific +14.9% +4.7% -8.1% -7.9% -16.6% -41.7% -28.2% -10.2%
Slide 24: Contacts and Calendar
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 13 October 2021 Q3 2021 Trading Update Tel: +44 (0) 1932 264 143 Email: investorrelations@michaelpage.com Web: http://www.page.co
Slide 25: Disclaimer
Headline Numbers Financial Review Capital Allocation and Sustainability Summary H1 21 Disclaimer This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal